Back Pay Awarded - Do I Have to Pay Back EDD for Unemployment I Received

[Luke92115]

This is what I found out and what I was told by the California EDD Claims
Adjuster Please let me know your feelings.

I told EDD about the funds, they told me just recently after I talked
to a claims adjuster, she told me that I never had to pay edd anything
due to the funds were considered a settlement and not earned income
that I physically worked at Nassco General Dynamics to get that money.

http://www.edd.ca.gov/uibdg/Total_an..._TPU_46037.htm


Per California employment code: California insurance code 1265.1-1265.9

Section 1265 of the Code states:

". . . payments to an individual under a plan or system
established by an employer which makes provisions for his employees
generally, or for a class or group of his employees, for the purpose
of supplementing unemployment compensation benefits shall not be
construed to be wages or compensation for personal services under this
division, and benefits payable under this division shall not be denied
or reduced because of the receipt of payments under such arrangements
or plans."

I have been talking to Edd Ever since the settlement and they have
never gotten a call from Nassco or received a payment, this is what
the Claims adjuster told me, she also told me that I Would not owe EDD
any money because the money I got was not money earned, dues to the
code 1265 section. I have talked to the tax department the overpayment
department and the regular EDD people and nothing.
This just pisses me off more and make me more determined to find the truth.
So this means that I never had to pay them the 9, 478
dollars.

What are wages?

All money, the value of meals and lodging, or other goods and services
provided to an employee as payment for personal services are “wages.”
Payment may be by private agreement, consent, or mandated by law.


The method of payment does not change the taxability of wages paid to
employees, no matter what terminology is used. Payments by the day, by
the hour, by “piece rate,” or any other measurement are wages, even if
the employee is a casual worker, day or contract laborer, part-time,
or temporary worker.

For more information, call our toll-free number (888) 745-3886 or
visit your local Employment Tax Office. You may also download our
Information Sheet: Wages (DE 231A).


Also found out that:

If back pay (wages) is awarded in a class action settlement, who is
responsible for reporting the wages and payroll taxes?

When a class action litigation involves wage and hour issues and the
settlement requires back pay to be made by a third-party
administrator, the employer of the workers (the defendant) is
responsible for reporting subject wages and paying Unemployment
Insurance, Employment Training Tax, and State Disability Insurance.
The third-party administrator who controls the payment of the back pay
is responsible for reporting Personal Income Tax (PIT) wages and
withholding PIT from the payments.

There are other complex issues associated with back pay. Call (888)
745-3886 for additional information.

That the union was to over sea the funds being payed back to edd if
their was funds to be paid back.

Does this sound correct or am I crazy.

Even though this was a back pay award, I did not earn the money for
physically working on the job. The woman kept on wondering why i had
to pay anything back, she told me I do not have to pay nothing back to
edd nor did my job.

Please let me know what you think.

Thanks Luke

[PattyPA]

Was the settlement taxable income? What was the settlement for?

[Luke92115]

The full amount was $37,500, minus the edd of $9,468 I got a check for $28,032. The $28,032 was taxed, took out like $11,310 thousand dollars. The settlement was for back pay awarded for wrongful termination. But Edd told me that I should not have to pay back the $9,468 because they considered it a settlement, not earned income because I did not physically work for the money. I was to be made whole from orders of the Arbitration.

[PattyPA]

Actually, the $37,500 was taxedm but that is irrelevant to the question,

I don't understand the "pay back" statement. SIT was what was withheld, correct?

You did, in effect "work for this money", because the settlement was related to your employment status.

[Luke92115]

What is Sit? They were claiming to with hold certain amount of money from the time I got unemployment till I was told I won settlement? Well EDD told me that the funds were not back wages due to that I did not physically work for the money? So the settlement did not effect my EDD payments at all. The woman I talked to at EDD the claim Ajuster told me that I did not have to pay back anything to EDD. THis is why the whole forum, I am trying to find the truth.

[PattyPA]

State Income Tax. Is that not what was withheld?

So, why would you not believe the UI claims adjuster?

[Luke92115]

I do but I want other opinions and trying to get physical proof to show the company and the union attorney what I found. The union attorney acts like he doe's not care about my case at all.